# In the matter of Mega Process Technology Private Limited

> NCLT judgment dated 2024-10-30. Citation: TCN-2024-NCLT-00318. The case involves an application filed by Balaji Formalin Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 30 Oct 2024
- **Citation:** TCN-2024-NCLT-00318
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mega-process-technology-private-limited-62823b00

## Summary

### Background

The case involves an application filed by Balaji Formalin Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Mega Process Technology Private Limited, the Corporate Debtor, for non-payment of an operational debt amounting to Rs. 1,26,96,800/- inclusive of IGST. The Operational Creditor provided project identification and local assistance services to the Corporate Debtor for a diary project of Panchmahal District Co-operative Milk Producers Union Limited (PDCMPUL) based on an association agreement dated 03.10.2015, where the Operational Creditor was to receive a 5% commission on the order value. The Operational Creditor claims that the services were

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## Facts

Balaji Formalin Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Mega Process Technology Private Limited (Corporate Debtor) for non-payment of an operational debt of Rs. 1,26,96,800/-. The Operational Creditor provided services to the Corporate Debtor for a diary project of Panchmahal District Co-operative Milk Producers Union Limited (PDCMPUL) based on an agreement dated 03.10.2015, where the Operational Creditor was to receive a 5% commission. The Operational Creditor claims that the services were rendered, and invoices were raised on 23.01.2018. The Corporate Debtor acknowledged the debt through balance confirmations for the

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court considered the submissions of both parties and examined the documents on record

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**Interpretation:** Section 9 of the IBC provides the mechanism for operational creditors to

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**Application:** The court applied Section 9 of the IBC to the facts of the case and found that

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Balaji Formalin…
- **Respondents:** Mega Process…
- **Advocates:** Gurdeep Singh…; Arusha…

## Timeline

- **2015-10-03 — Association A…**: Association agreement between the Operational Creditor and the Corporate Debtor for…
- **2018-01-23 — Invoice R…**: The Operational Creditor raised…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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